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The following is issued on behalf of the Communications Authority:
Following the decision of the Chief Executive (CE) in Council announced today (May 12) to renew the domestic free television programme service (free TV) licence of Television Broadcasts Limited (TVB) for another 12 years from December 1, 2015, to November 30, 2027, the Communications Authority (CA) has informed TVB that the CA has decided to administratively assign to TVB the broadcasting spectrum it currently holds, comprising two sets of frequency channels, and one digital multiplex of the single frequency network coupled with half of the capacity of one digital multiplex of the multiple frequency network in 470 - 806 MHz of the Ultra High Frequency Band, for the provision of its licensed analogue and digital terrestrial television (DTT) services during the validity of its renewed free TV licence. The spectrum assignment lasts for a period of 12 years, from December 1, 2015, to November 30, 2027, to dovetail with the term of TVB's renewed free TV licence.
TVB currently holds a fixed carrier licence under the Telecommunications Ordinance (Cap. 106) (TO), with the broadcasting spectrum assigned to it stipulated in Schedule 2, for it to provide its licensed analogue and DTT services. Although TVB's existing assignment of spectrum is not due to expire until November 30, 2018, given the CE in Council's decision today as outlined above, the CA considers that it is important for it to decide now whether spectrum should be re-assigned to TVB for the provision of its licensed free TV services during the validity of its renewed free TV licence to coincide with the CE in Council's decision in respect of TVB's free TV licence renewal.
In coming to the decision of administratively assigning spectrum to TVB to dovetail with the validity of its renewed free TV licence, the CA has taken into account all relevant factors, including the objectives and provisions of the TO, its statutory duties, the prevailing free TV landscape, the Radio Spectrum Policy Framework (SPF) promulgated by the Government in 2007 and the views of the Commerce and Economic Development Bureau (CEDB).
Under section 32G(1) of the TO, the CA has the statutory duty to promote the efficient allocation and use of the radio spectrum as a public resource of Hong Kong. Section 32H(2)(c) of the TO empowers the CA to assign radio frequencies.
Having regard to its statutory duty to promote the efficient allocation and use of the radio spectrum, the CA considers that only free TV licence holders under the Broadcasting Ordinance (Cap. 562) should be eligible for assignment of spectrum, as only they are in a ready position to effectively and efficiently use that spectrum for the provision of their licensed free TV services for the benefit of the viewing public. Given that spectrum is a scarce public resource, this eligibility criterion is of fundamental importance as otherwise it could lead to idleness of spectrum or its wasteful hoarding.
In accordance with the SPF, the CA needs to assess the likelihood of competing demands from providers of non-Government services at the date when the spectrum currently assigned to TVB would become available (on December 1, 2018, following the expiry of the existing spectrum assignment). The CA has assessed the likely supply of spectrum and the likely demands from existing and prospective licensees for the spectrum currently assigned to TVB and is of the view that there are likely to be competing demands for that spectrum. Applying the guiding principle in the SPF, where there is a likelihood of such competing demands, a market-based approach to spectrum management should be adopted unless there are overriding public policy reasons to do otherwise.
The CA notes the views expressed by the CEDB that unique social functions are performed by free TV services, including their being the most significant source of free entertainment, education and information for the general public; the unparalleled social and public functions they perform to cater for the needs of the masses and minorities; and the essential platform they provide to widely disseminate messages to the masses in case of emergency. The CA also notes the CEDB's concerns that the CA should carefully evaluate the risks of potential disruption to the provision of spectrum-based free TV services to the public which may arise from the adoption of a market-based approach.
Having considered all the relevant factors, the CA is of the view that the unique social functions performed by free TV services (including those currently provided by TVB) and the need to avoid potential service curtailment and disruption of a free TV licensee with extensive coverage and penetration constitute overriding public policy reasons for not adopting a market-based approach to the re-assignment of broadcasting spectrum to TVB. Accordingly, the CA has decided to adopt an administrative approach to re-assign to TVB the broadcasting spectrum it currently holds for the provision of its licensed free TV service during the validity of its renewed free TV licence.
Detailed considerations are set out in the CA's Statement on assignment of spectrum to TVB for the provision of its licensed free TV service which is published on the CA's website (www.coms-auth.hk/filemanager/statement/en/upload/326/ca_statements20150512_en.pdf).
For the avoidance of doubt, nothing in the CA's Statement will in any way fetter the CA's discretion to manage broadcasting spectrum and to decide how it should be assigned in the future. In exercising that discretion and making such decisions, the CA will have regard to all relevant factors, including the TO, its statutory duties, the prevailing free TV landscape and the relevant policy considerations. The CA will consider future assignments or re-assignments of broadcasting spectrum on a case by case basis.
Ends/Tuesday, May 12, 2015
Issued at HKT 20:59
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